ISLAMABAD – The solar panels have gotten cheaper in Pakistan after cut of 18 percent in sales tax to 10 percent in a bid to promote renewable energy in Pakistan.
Deputy Prime Minister and Foreign Minister Senator Ishaq Dar made announcement of the major policy shift .
Speaking inthe Senate, Dar revealed that 46% of the materials used in solar power systems are imported, making affordability a major challenge for consumers and clean energy investors. He said the decision to cut the solar tax is part of the government’s broader economic strategy to support solar energy adoption and reduce dependency on fossil fuels.
The tax relief on solar energy products in Pakistan comes amid growing demand for sustainable and affordable electricity solutions. Industry experts believe the move will lower installation costs and accelerate Pakistan’s transition toward green energy.
Dar emphasized that Pakistan’s economy is stabilizing, and in response to public and stakeholder feedback, the government has revised several budget proposals.
The reduction in solar panel taxes reflects the government’s commitment to supporting sustainable development goals (SDGs) and easing the financial burden on households and businesses investing in solar systems.
Addressing concerns over digital taxation, the deputy prime minister clarified that sales tax on digital services would remain a provincial subject, and there was no move to centralize this revenue stream under federal control.
The budget highlights showed that the government decided to increase funding for universities in Sindh, focusing on strengthening higher education infrastructure. It also included key energy development projects across provinces which would be completed under PIDCL to replace role previously played by PWD.
Discussions with the International Monetary Fund (IMF) are underway to manage revenue losses without compromising development goals.
Solar panel prices increase massively after Budget 2025-26 [New Per Watt Rates]
